SK Telecom Steps Up COVID-19 Support, Announces 110 Billion KRW Win-Win Plan

[Asia Economy Reporter Joesulgina] SK Telecom has prepared a large-scale win-win plan worth a total of 113 billion KRW to support frontline agencies and partners struggling due to the spread of the novel coronavirus infection (COVID-19). This is a bold decision to coexist with business partners who are making every effort to maintain service quality on the ground even during the national emergency.

According to SK Telecom on the 5th, the company paid 35 billion KRW, part of the incentives scheduled to be paid at the end of this month to about 750 agencies nationwide, in advance yesterday. This measure is to secure liquidity for frontline agencies whose sales have decreased due to the impact of COVID-19. In addition, 4 billion KRW will be additionally supported as operating expenses to help the smooth operation of the distribution network. The support funds will be used for purchasing relief supplies such as masks, hand sanitizers, and store disinfection, as well as credit interest support.

In particular, agencies located in Daegu and Gyeongbuk regions, which have been most affected by COVID-19, will be granted a one-month extension on the payment deadline for mobile phone purchase payments (worth 40 billion KRW) and an additional 1 billion KRW for store operating expenses. SK Telecom explained, "We decided on this support to share the difficulties of agency owners and store employees who are struggling in sales due to the spread of COVID-19," adding, "We have established a company-wide ‘COVID-19 Integrated Situation Room’ to monitor the spread and response status of COVID-19 in the distribution network in real time."

SK Telecom also presented a win-win plan for external partners who are thoroughly managing network infrastructure such as 5G across the country. This is based on the judgment that the quality management of telecommunication services by a major carrier is more important than ever in times of crisis.

Accordingly, part of the construction payments from March to June will be paid early in March to about 140 network infrastructure construction companies. The total amount is about 23 billion KRW, of which about 6 billion KRW will be paid to companies in Daegu, Gyeongbuk, and Busan regions. In addition, about 10 billion KRW in service fees scheduled for next month will be paid early in March to small and medium-sized partners responsible for network maintenance and repair.

SK Telecom stated, "This decision is to ease the efforts of partners and field employees who are working hard to maintain SK Telecom’s call quality across the country even at this moment."

SK Broadband is also participating in this liquidity support for partners. SK Broadband plans to pay 8 billion KRW in construction payments for the first half of the year early in March to about 70 construction companies, and advance the payment of 3 billion KRW in service fees for small and medium maintenance companies by one month, implementing a total support of about 11 billion KRW.

SK Telecom plans to implement additional liquidity enhancement support measures after April depending on the prolongation of COVID-19. It will also provide quarantine supplies such as masks to 187 small and medium enterprises that have signed win-win growth agreements.

Park Jung-ho, CEO of SK Telecom, said, “We have considered various practical support measures to alleviate the difficulties of our frontline business partners even a little,” and added, “We will continue to review ways to coexist with external partners so that this support will not be a one-time event.”

This content was produced with the assistance of AI translation services.